Coal Journal No. 21/2017: Output
Thermal coal retreated further to US$72.85 per ton Wednesday (May 31), but the commodity gaining 36.3% year-on-year. Other than weakness of crude oil, thermal coal was under pressure from higher production reports in major producing and exporting countries. Coal production in the United States, for example, grew 17.6% year-on-year in the first five months of 2017, significantly higher than estimates.
Revisiting Plantation Shares
Most shares of plantation companies listed on Indonesia Stock Exchange (IDX) have retreated significantly from their peak to tracking crude palm oil and natural rubber prices. With the exception of Sawit Sumbermas (SSMS), other stocks are now traded with PE multiple below 10 for their annualized earnings in the first quarter.
Mandatory Domestic Processing in Action: Nickel
Talking about adding value to the country’s natural resources, the mandatory domestic processing of minerals, which is mandated by Law No. 4/2009, has been implemented well in nickel. Billions of USD have been invested, mostly by Chinese companies, in the industry in the past few years.
Growing Merger & Acquisition in Coal
Late last week, ASX-listed Cokal Ltd executed an agreement to raise A$10 million in funding for the development of its 60% owned PT Bumi Barito Mineral (BBM) coal project in Central Kalimantan. Shareholders of PT Jasa Tambang Nusantara have decided to sell their...
Coal Journal No. 20/2017: Shares
Thermal coal price retreated to US$74.1 per ton this week on reports about ample supply in the seaborne market and consolidation in China. After five consecutive months of above US$80 per ton for Indonesian coal reference price (HBA), we might eventually see it below US$80 for the first time in eight months.
Palm Oil Outlook
Indonesia recorded export revenues of US$1.81 billion from vegetable oil last month, down 12.23% from March. In the first four months of 2017, however, export revenues from the product surged by 52.8% to US$8.06 billion, the largest non oil and gas export commodity for the country. Prospect for the whole year?
Coal Journal No. 19/2017: Output
Thermal coal retreated to US$73.6 per ton Thursday (May 18), representing 12.5% decline month-on-month, but a 43.2% gain year-on-year. Global dynamics, including coal production in US, China, and Indonesia affecting the commodity. For the week ended May 13, the estimated US coal production grew 17.6% from the comparable week last year.
Coal Journal No. 14
Reports about economic reform in China, which is focused on phasing-out of sub-standard production capacity in iron-steel and coal-fired power plants, continue to weigh recovery of thermal coal prices, which fell to US$73 per ton last week. At the same time, some coal producers in Indonesia continue to boost their output.
IPO to Watch: Kirana Megatara
PT Kirana Megatara, crumb rubber producer, has kicked off an initial public offering (IPO) of 1.15 billion shares at Rp400 to Rp480 per share. The company expects to raise between Rp460 billion and Rp550 billion from the IPO to strengthen equity and finance expansion plans. The IPO is interesting because natural rubber rallied from 150 yen/Kg in third quarter of 2016 to as high as 350 yen/kg early this year, but has since retreated to around 200 yen/Kg.
Sinarmas Coal Play
Strategic investor will acquire 588.24 million new shares issued by PT Golden Energy Mines Tbk (GEMS), a company controlled by Sinarmas Group, for Rp2,900 per share or Rp1.7 trillion or around US$128 million. Proceeds from the rights issue will clearly strengthening the group’s position in the country’s coal mining business.